Best known for snowmobiles and off-road vehicles, Plymouth-based Polaris Industries said Wednesday it bought its way into the pontoon boat business.
Polaris said it signed a deal to buy Boat Holdings, LLC, an Elkhart, Ind.-based boat maker in a deal valued at about $805 million. The family-owned business is the nation's largest builder of pontoon boats. The transaction is expected to close in the next few months.
Pontoons are one of the largest and fastest growing segments in the marine industry, Polaris said in a statement announcing the deal. Boat Holdings brands, including Bennington, Godfrey, Hurricane and Rinker, sell through a network of 500 dealers mainly in the United States and Canada. The company generated some $560 million in sales last year.
Boat Holdings expands Polaris' footprint in the recreational outdoors market, Polaris CEO Scott W. Wine said in a statement. "Our product lineup will offer options to be enjoyed on the roads, trails, sand, dirt, snow and water."
Polaris touted the potential for cross-selling opportunities, noting the similar customer demographics of off-road vehicle and boat owners. It said about 30 percent of Polaris customers own a boat.
Boat Holdings will keep its headquarters and manufacturing facilities in Indiana.
Polaris Industries stock fell about 1.5 percent following the announcement Wednesday as the broader stock market rose.